The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China

IntroductionEnhancing agricultural productivity and promoting sustainable development in China are critical priorities, given their significant contribution to food security and rural development. However, achieving consistent agricultural productivity growth across regions and sectors has been chal...

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Main Authors: Jiali Yang, Abate Meseretchanie
Format: Article
Language:English
Published: Frontiers Media S.A. 2024-10-01
Series:Frontiers in Sustainable Food Systems
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Online Access:https://www.frontiersin.org/articles/10.3389/fsufs.2024.1345549/full
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author Jiali Yang
Jiali Yang
Abate Meseretchanie
author_facet Jiali Yang
Jiali Yang
Abate Meseretchanie
author_sort Jiali Yang
collection DOAJ
description IntroductionEnhancing agricultural productivity and promoting sustainable development in China are critical priorities, given their significant contribution to food security and rural development. However, achieving consistent agricultural productivity growth across regions and sectors has been challenging, leading to inefficiencies and environmental pressures. To address this, the potential of digital inclusive finance (DIF) as a catalyst for progress has been explored.MethodsThis study investigates the impact of DIF on agricultural total factor productivity (ATFP) through farmland transfer, with implications for rural revitalization and high-quality agricultural development. Using the HMB index method, we calculate and decompose China’s inter-provincial ATFP from 2011 to 2020. Employing the dynamic panel fixed effect model and SYS-GMM method, we empirically test the influence of DIF on agricultural productivity in relation to farmland transfer.Results and discussionOur findings reveal a slow upward trend in China’s ATFP, driven primarily by scale efficiency. Notably, a 1% increase in the general index of DIF correlates with a 0.136% increase in ATFP. We analyze the sub-classification indexes of digital inclusive finance, namely coverage breadth, depth of use, and digitalization degree. Their contributions to agricultural productivity growth are significant, with coverage breadth having the greatest impact, followed by depth of use and digitalization degree. Farmland transfer acts as a crucial intermediary, enhancing agricultural allocation efficiency and driving the relationship between digital finance and total factor productivity growth. Interestingly, the western region exhibits the highest growth rates, followed by the eastern region, while the central region shows no significant effects.ConclusionTo comprehensively enhance ATFP, aligning supply and demand for digital financial services, leveraging service depth, and guiding farmland transfer according to local conditions are essential. These findings offer valuable insights into effective strategies for maximizing the potential of DIF, promoting rural development, and achieving sustainable agricultural growth.
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spelling doaj-art-93091020db074085a5dd7bd53f8a5ce02025-08-20T01:50:45ZengFrontiers Media S.A.Frontiers in Sustainable Food Systems2571-581X2024-10-01810.3389/fsufs.2024.13455491345549The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in ChinaJiali Yang0Jiali Yang1Abate Meseretchanie2Business School, Shaoguan University, Shaoguan, Guangdong, ChinaNorth Guangdong Rural Revitalization Research Center, Shaoguan University, Shaoguan, Guangdong, ChinaSchool of Tourism and Cultural Industry, Research Institute of Rural Revitalization, Hunan University of Science and Engineering Yongzhou, Hunan, ChinaIntroductionEnhancing agricultural productivity and promoting sustainable development in China are critical priorities, given their significant contribution to food security and rural development. However, achieving consistent agricultural productivity growth across regions and sectors has been challenging, leading to inefficiencies and environmental pressures. To address this, the potential of digital inclusive finance (DIF) as a catalyst for progress has been explored.MethodsThis study investigates the impact of DIF on agricultural total factor productivity (ATFP) through farmland transfer, with implications for rural revitalization and high-quality agricultural development. Using the HMB index method, we calculate and decompose China’s inter-provincial ATFP from 2011 to 2020. Employing the dynamic panel fixed effect model and SYS-GMM method, we empirically test the influence of DIF on agricultural productivity in relation to farmland transfer.Results and discussionOur findings reveal a slow upward trend in China’s ATFP, driven primarily by scale efficiency. Notably, a 1% increase in the general index of DIF correlates with a 0.136% increase in ATFP. We analyze the sub-classification indexes of digital inclusive finance, namely coverage breadth, depth of use, and digitalization degree. Their contributions to agricultural productivity growth are significant, with coverage breadth having the greatest impact, followed by depth of use and digitalization degree. Farmland transfer acts as a crucial intermediary, enhancing agricultural allocation efficiency and driving the relationship between digital finance and total factor productivity growth. Interestingly, the western region exhibits the highest growth rates, followed by the eastern region, while the central region shows no significant effects.ConclusionTo comprehensively enhance ATFP, aligning supply and demand for digital financial services, leveraging service depth, and guiding farmland transfer according to local conditions are essential. These findings offer valuable insights into effective strategies for maximizing the potential of DIF, promoting rural development, and achieving sustainable agricultural growth.https://www.frontiersin.org/articles/10.3389/fsufs.2024.1345549/fullfarmland transferdigital inclusive financeagricultural total factor productivityscale efficiencyallocation efficiency
spellingShingle Jiali Yang
Jiali Yang
Abate Meseretchanie
The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China
Frontiers in Sustainable Food Systems
farmland transfer
digital inclusive finance
agricultural total factor productivity
scale efficiency
allocation efficiency
title The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China
title_full The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China
title_fullStr The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China
title_full_unstemmed The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China
title_short The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China
title_sort intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in china
topic farmland transfer
digital inclusive finance
agricultural total factor productivity
scale efficiency
allocation efficiency
url https://www.frontiersin.org/articles/10.3389/fsufs.2024.1345549/full
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